Mentha oil feels profit booking heat, drops 2.5%
The prices dropped as much as 2.50 per cent at Rs 1,667 per kg in a business turnover
By ETMarkets.com |
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Mentha oil prices turned softer in futures market on Wednesday.
Most market participants decided to stay on the sidelines as demand turned lacklustre. Profit-taking by traders cast its shadow, said analysts.
The prices dropped as much as 2.50 per cent at Rs 1,667 per kg in a business turnover of 702 lots on the Multi Commodity Exchange.
"A correction in mentha oil futures (September) can be used as a buying opportunity as the commodity may take support near 1,670 levels... On the demand side, export inquiries are average at present, but the Indian rupee weakening to new all-time lows against the US dollar is likely to support mentha oil prices," said SMC Investments and Advisors.
On the Multi Commodity Exchange, the oil for delivery in October was lower by Rs 41.30, or 2.39 per cent, at Rs 1,688 per kg in 90 lots.
Derived from herb Mentha arvensis through distillation, mentha oil mostly makes its way into food and flavourings.
Most market participants decided to stay on the sidelines as demand turned lacklustre. Profit-taking by traders cast its shadow, said analysts.
The prices dropped as much as 2.50 per cent at Rs 1,667 per kg in a business turnover of 702 lots on the Multi Commodity Exchange.
"A correction in mentha oil futures (September) can be used as a buying opportunity as the commodity may take support near 1,670 levels... On the demand side, export inquiries are average at present, but the Indian rupee weakening to new all-time lows against the US dollar is likely to support mentha oil prices," said SMC Investments and Advisors.
On the Multi Commodity Exchange, the oil for delivery in October was lower by Rs 41.30, or 2.39 per cent, at Rs 1,688 per kg in 90 lots.
Derived from herb Mentha arvensis through distillation, mentha oil mostly makes its way into food and flavourings.
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